Given I was the real estate agent in this transaction, I gave careful consideration on our contingencies in our Purchase Agreement. We decided to conduct this due diligence within 45 days of acceptance of the offer, which is a longer inspection than usual, but we actually had to split the land and get a new survey filed with the county and we just weren't sure exactly how long that process would take. Here's what we selected for contingencies:
Overall inspection - This was for us to check health and safety conditions of the property, environmental status, survey, etc. This inspection meant we were researching the property with interactive maps, getting to know any hazards/waste in the area, details about a nearby hazardous liquid pipeline, utility access, driveway limitations due to the hill, nearby developments, protected wetlands on the property, zoning regulations, flood zones, forest health, etc.
Land split & approved survey - We made the property contingent on a land split and approved survey by the local Township and county at our expense. We wrote in the terms and conditions that the purchase was contingent upon a boundary reconfiguration yielding our parcel to be at least 10.1 acres. Normally a survey from a licensed surveyor would suffice, but since we were actually reconfiguring the acreage we needed it to be approved and filed by the governing bodies.
Perc test – We want to ensure the we have soils that drain properly to avoid an engineered septic tank. We noted this was to be complete at the seller’s expense, which they already told us they were planning.
Examination of build requirements – Although we didn’t have an HOA or subdivision guidelines, we wanted to ensure we could build a contemporary home on the lot and a pole barn.
Soil testing – We did mark this as a contingency, however after further research and consultation from Michigan State University Lawn & Garden Extension, we verified due to the lot being vacant and wooded (no prior house or farm there), it was low risk/not necessary to test our soils.
Well consultation – We wanted to confirm with a local expert that the elevation/hill where we would need to install the well was not of concern, nor was the nearby hazardous liquid pipeline.
Appraisal – This had to be complete anyway for the loan.
There you have it!!! Those were our contingencies. As you will see in our video below, we did end up waiving the perc test.
With respect to what we didn’t choose to make our purchase contingent on:
Successful well drilling – we did not pursue this as we didn’t have the house plans mature enough to even know where the well would want to be located.
I hope this helped give you some confidence what you should be asking/looking for when looking at properties!!
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